How to deal with venture capitalists

Many entrepreneurs do not know how to deal with venture capitalists. Many entrepreneurs see investors with hundreds of pages of business plans. No matter what the content of the plan is, it is foreseeable that such a meeting is mostly a failed experience.

To see venture capitalists, the most important thing is to have a clear business philosophy for the business they want to operate. "The so-called clear business philosophy refers to what you want to do, who you want to provide, what kind of market you have, how you want to make money in the market, and how you manage it, what are their unique characteristics? "These must be very clear.

Before going to venture capitalists, entrepreneurs should have a self-check list, which must at least include such content and describe the core content of the entire plan in one sentence, all content can be clearly explained within 3 minutes. If there is a prototype of a product as much as possible, there should be at least a relatively complete implementation team.

There is a belief in dealing with venture capitalists that we should always be honest. Almost all venture capitalists regard entrepreneurial loyalty and integrity as the first item of entrepreneurial quality. In fact, it is not hard to think about it. Venture capitalists need to hand over millions or tens of millions of dollars to entrepreneurs. How can they trust themselves and entrust such great responsibilities to others?

Writing a good-looking business report is not a very difficult task, but it is necessary to distinguish the document presented to the bureaucracy from the commercial plan presented to the venture capitalists, it is of great significance in commercial society to directly introduce the theme, describe what the project is and where the profit points are, however, the correct analysis of numbers is what really attracts investors. Without any false or fantasies, these venture capitalists have seen too many things. Please delete any things that are constantly hyped in the media and remember one, the most authentic is the best and most convincing.

The first four or five pages of the Business Plan are very important. These four or five pages are a brief introduction to the entire plan. If these pages cannot attract venture capitalists, they won't be able to see them later. Each conclusion on these four or five pages should be able to find detailed arguments and analysis behind the plan.

When dealing with venture capitalists, You have to persevere until success. You cannot give up because of a temporary setback. Investors have different perspectives, different investment directions, and contact a number of investors to discover the "angel" of an enterprise ".

When selecting investors, there are still some that cannot be ignored. As a startup enterprise, do not consider the kind of short-sighted investment company that only provides funds, that is, smartmoney. In fact, there is a lot of idle money in China, but it doesn't mean that a company can become a successful enterprise if it has an idea to add money. There are still many things to do. Start-ups choose investors who have successful investments and management experience in similar fields. They are only familiar with what kind of help the company needs at different stages, in the company's growth process to provide a variety of help such as help the company determine the strategic direction, the establishment of strategic partners at home and abroad, and even daily management consulting.

The important difference between venture capital and normal investment is the participation of Venture Capital Chamber of Commerce in the company's management. When selecting venture capital, you must check whether investors are capable of making "Gardeners" for new enterprises. If not, you should carefully consider investing more money. The true value of a venture capital fund lies in the fact that the venture capital fund invests more than money, but also its experience, wisdom, relationships, and other strategic resources required by the enterprise.

There is another sentence that must be kept in mind in the process of looking for investment. This is perhaps the most successful entrepreneur in China. Zhang Chaoyang, president of Sohu, said: "You must never need any funds for the moment, because future shares will be more valuable ".
From: http://edu.netbig.com/rank/st1/st02/505/20000925/68200.htm